Investor Presentation
As of Fourth Quarter and Full Year 2018 Disclaimer
This presentation contains forward - looking statements regarding the Company’s results and prospects. Actual results could differ materially from these statements. The forward - looking statements in this presentation should be read in conjunction with the factors described in “Item 3. Key Information – Forward Looking Statements” in the Company’s Annual Report on Form 20 - F, which, among others, could cause actual results to differ materially from those contained in forward-looking statements made in this presentation and in oral statements made by authorized officers of the Company. Readers are cautioned not to place undue reliance on these forward - looking statements, which speak only as of their dates. The Company undertakes no obligation to publicly update or revise any forward - looking statements, whether as a result of new information, future events or otherwise.
2 SNAPSHOT: Our Core Businesses
Share of Consolidated Revenue 2018 CONTENT CABLE A leading cable operator in Mexico Advertising Four broadcast channels Video: 4.4 million RGUs * Video in Mexico City and Data: 4.5 million RGUs affiliated stations Voice: 3.0 million RGUs throughout the country * Revenue generating units Voz Network Subscription 34% 26 pay-tv networks and 37% 74 feeds in Mexico and CABLE globally CONTENT Licensing & Syndication WiFi SKY Univision royalties, other licensing fees, and exports to over 75 21% CONTENT countries
SKY
SKY A leading DTH system in Mexico and internet provider, also operating in Central America and the Dominican Republic 7.7 million RGUs
Source: Grupo Televisa's public filings 3 SNAPSHOT: Highlights
o North of Ps 100 billion in consolidated revenue, growing at a CAGR* of 6.5% since 2013
o Consolidated Operating Segment Income (“OSI”) Ps 40 billion, a CAGR of 6.4% since 2013
o Investment grade. Average debt maturity of 14.7 years. Net-debt-to-EBITDA of 2.2x
o Declining Capital Expenditures-to-Sales ratio from 27.6% in 2016 to 17.7% in 2018
o 19.6 mm revenue generating units (“RGUs”) contributing with 61.6% of Consolidated OSI in 2018
o Fastest growing broadband provider in the country in terms of new customers
o Content production powerhouse. 40% of the audience during prime was watching one of our broadcast or pay-TV channels.
o Two thirds of Televisa’s equity is in the hands of institutional investors, mostly U.S. based
o Publicly traded in the NYSE since 1993 and in the Mexican Stock Exchange since 1991
*Compound Annual Growth Rate 4 DEFINING TRENDS
I. Highlights 4Q’18
II. Diversified revenue streams
III. Growing operating cash flow
IV. Untapped opportunities in growth markets
V. Strong balance sheet
5 Highlights 4Q’18
o Consolidated Net Sales and Consolidated Operating Segment Income grew Consolidated OSI Revenue 2.9% and 3.2%, respectively Ps. in billions Ps. in billions 27.3 o Advertising sales upfront reached 10.9 26.0 26.7 10.5 25.0 16.4 billion pesos 9.9 10.2 24.0 9.9 21.4 o Double-digit growth in Cable MSO 8.1 8.5 19.8 7.7 18.3 Segment Sales and Operating Segment Income of 11.0%
o Sky reached 92 thousand of broadband RGUs
o Televisa concludes its restructuring analysis with the decision to remain as a vertically integrated media and telecommunications operator
Source: Grupo Televisa's public filings 6 Highlights 4Q’18
Ps. in billions Cable Revenue o Strong top line growth: 16.2% CAGR from 2013 9.5 8.6 8.3 o OSI margins have expanded rapidly, reaching 42.1% 7.6 in 4Q’18, up from 35.8% in 2013 6.2 4.6 o During 4Q’18 total net adds were 316 thousand, 4.0 3.7 representing a year-over-year growth in RGUs of 11.7% .
Net Adds ('000) 1Q18 2Q18 3Q18 4Q18 4Q'11 4Q'12 4Q'13 4Q'14 4Q'15 4Q'16 4Q'17 4Q´18 Video 53 78 -35 6 Broadband 173 136 62 81 Telephony 36 115 247 229 Cable O.S.I. RGU Net Adds 262 329 274 316 Ps. in billions 4.0 o Churn has come down significantly 3.7 3.3 3.0 o After important decline in capex, it is now free cash 2.5 flow positive
1.7 1.4 1.6 o Over 14.5* million homes passed, from which more than 90% can receive data speeds of 100 Mbps
o We purchased the fiber-to-the-home business of 4Q'11 4Q'12 4Q'13 4Q'14 4Q'15 4Q'16 4Q'17 4Q´18 Axtel in certain cities, adding more than 550 Source: Grupo Televisa's public filings thousand RGUs 7 *Excluding acquired homes passed from Axtel Highlights 4Q’18
o As of 4Q’18, close to eight million pay TV RGUs in Sky Revenue Mexico, Dominican Republic and Central America Ps. in billions 5.5 5.6 5.5 o 5.0 Revenue reached Ps 22.0 billion in 2018, 4.5 4.2 contributing with 20.7% of consolidated revenue 3.8 3.2 o Margins have remained solid at around 45% for more than 10 years, in spite of strong competition
o Only pay TV platform in Mexico to transmit all 64 matches of the 2018 Soccer World Cup 4Q'11 4Q'12 4Q'13 4Q'14 4Q'15 4Q'16 4Q'17 4Q´18 o We launched broadband services under the Blue Telecomm brand: Ps. in billions Sky O.S.I. • Fixed broadband through incumbent’s network 2.4 (3 to 200 Mbps – subject to incumbent’s 2.2 2.3 2.2 technical capability in a given location) 2.0 1.8 1.6 • Fixed wireless broadband through Red 1.4 Compartida and AT&T’s wireless network (5 and 10 Mbps)
o As of the end of 2018, close to 92 thousand broadband RGUs 4Q'11 4Q'12 4Q'13 4Q'14 4Q'15 4Q'16 4Q'17 4Q´18
Source: Grupo Televisa's public filings 8 Highlights 4Q’18
Content Revenue o We are the leading producer of Spanish language Ps. in billions 11.1 11.7 content in the world 10.8 10.6 10.6 10.4 o As of 4Q18, Content Revenue and Operating 10.2 Segment Income posted growth of 0.3% and 3.0%, respectively 9.7 o We fully revamped our content offering with more updated formats and storylines and higher production values 4Q'11 4Q'12 4Q'13 4Q'14 4Q'15 4Q'16 4Q'17 4Q´18 o Our flagship broadcast network alone brought more viewers than all competing pay TV
Ps. in billions Content O.S.I. networks combined 5.1 4.8 4.8 4.7 4.6 4.8 o We are partnering with leading global content 3.9 4.0 players such as Amazon, Edemol, Mediapro and Sony
o Our new advertising sales mechanism has now been fully assimilated and is achieving its objectives
4Q'11 4Q'12 4Q'13 4Q'14 4Q'15 4Q'16 4Q'17 4Q´18
Source: Grupo Televisa's public filings 9 Highlights 4Q’18
o #1 Morning, afternoon and prime time channel in Mexico o Most watched shows (Mo-Fri): La Rosa de Guadalupe, Mi marido tiene más familia, Sin (Ch.2)Las miedo a la verdad. Estrellas o #1 Comedy Shows: El privilegio de mandar, 40 y 20, Nosotros los Guapos. o #1 Magazine show: Hoy o Sunday reality leaders: La Voz México, Pequeños gigantes and Mira quien baila.
Kids o Channel 2 and Channel 5 have as much audience as all pay TV channels combined o Most successful animated content
o #1 morning newscasts with Despierta con Loret and Al aire con Paola o #1 night newscast with En punto con Denise Maerker News o #1 news channel on a national basis: Foro TV
o 23 out of 30 most watched soccer matches in local league. Sports o Most watched night soccer show: La Jugada and NTD. Exclusive sports events o Leader in 2018 Soccer World Cup audience
Movies o Most watched movies in FTA TV: No se aceptan devoluciones and No manches Frida
o 5 of our networks within the 10 most watched pay TV channels in Mexico Televisa o Most watched channel among women: Tlnovelas and Unicable Networks o #3 and #4 most watched movie networks: De Película and Golden o Leaders in music/lifestyle channels: RMS and Bandamax 10 DEFINING TRENDS
I. Highlights 4Q’18
II. Diversified revenue streams
III. Growing operating cash flow
IV. Untapped opportunities in growth markets
V. Strong balance sheet
11 DIVERSIFIED REVENUE STREAMS
A strong position in our three core businesses
Cable Revenue Sky Revenue Content Revenue Ps. in billions Ps. in billions Ps. in billions
36.2 22.2 22.0 33.0 21.9 39.2 31.9 34.9 36.7 34.0 19.3 33.8 34.3 28.5 17.5 16.1
20.9 17.1
2013 2014 2015 2016 2017 2018 2013 2014 2015 2016 2017 2018 2013 2014 2015 2016 2017 2018
Strong organic growth as a result Leveraging off its customer base, Resuming growth after the of attractive 3-play offers and a one of every four homes in negative impact of an unfavorable focus on customer service Mexico, to sell broadband ad sales pricing mechanism services Source: Grupo Televisa's public filings 12 DIVERSIFIED REVENUE STREAMS
Distribution (Cable & Sky) overtook Content in terms of OSI since 2014
Consolidated Revenue Contribution to OSI Ps. in billions
120.0 OSI Margin 100.0%
101.3 90.0% Others 100.0 96.3 93.6 80.0% 21% 88.1 24%
80.1 70.0% 32% 80.0 73.8 34% 37% 38% Cable
60.0% 25% 25%
60.0 50.0% 25% 25% 40.0% 24% 27% Sky 40.0 39.7% 39.6% 39.6% 39.2% 38.7 38.3% 30.0%
20.0%
20.0
10.0% Content 52% 48% 41% 38% 34% 37%
0.0 0.0% 2013 2014 2015 2016 2017 2018 2013 2014 2015 2016 2017 2018
Our multiple revenue sources Cable has overtaken Content as the have allowed us to post a CAGR most important contributor to of 6.5% since 2013 Consolidated OSI
Source: Grupo Televisa's public filings 13 DIVERSIFIED REVENUE STREAMS Content
Within Content, the revenue mix has also changed with advertising declining in importance
Content Revenue Mix o Televisa’s content revenue Content Revenue mix has changed over the All Other Content Revenue years Ps. in billions Licensing & Syndication Advertising Revenue Network Subscription o During 4Q’18, advertising Advertising revenues represented 62% 1.7 2.7 24% 24% 20% 22% 1.5 2.1 29% of Content revenues 1.7 2.6 2.8 32% 36% 1.6 0.8 38% 0.6 1.0 0.8 1.0 0.7 o On a consolidated basis, 1.1 1.3 advertising revenues represented 25% of consolidated revenues in 76% 76% 80% 78% 71% 68% 4Q’18 64% 62%
o Televisa continues to explore other ways of diversifying its 7.4 7.7 8.3 8.6 7.7 8.0 6.8 6.6 Content revenue base
Source: Grupo Televisa's public filings 14 DIVERSIFIED REVENUE STREAMS Content
The majority of our Licensing and Syndication revenue originates in the Univision Royalties
o We monetize our content in U.S. Univision Royalties through our licensing USD Millions USD Millions agreement with Univision. Total Revenue 383.6 Adjusted OIBDA o The royalty rate is 16.45% of Interest Expense substantially all of Univision’s audiovisual revenue. 2,999 2,911 2,858 2,937 2,714 324.6 o A step up in the royalty rate of 313.7 311.1 313.9 Univision came into effect on January and July 2018.
o In addition to our stream of royalties, we hold equity and 1,254 1,312 1,333 1,310 warrants of Univision which 1,023 upon their exercise would 573 540 494 represent 36%. 423 391
2014 2015 2016 2017 2018 2014 2015 2016 2017 2018
Source: Grupo Televisa’s and Univision’s public filings 15 DIVERSIFIED REVENUE STREAMS Content
We are developing our digital platforms to turn them into a new, solid revenue stream
KPI Q4 Q4 % Some of our key online 2017 2018 Chg. o The number of views of our destinations: content in YouTube, Facebook Televisa 11m 14m 27% and Instagram reached close to Sites’s www.televisa.com Users 12 billion in 2018 (87% y/y growth). Televisa 234m 291m 24% www.lasestrellas.tv Pageviews o During 2018 we became the deportes.televisa.com YouTube 846m 2.0b 142% number one digital platform views among all media companies in noticieros.televisa.com Facebook 1.1b 1.8b 61% terms of number of users views (comScore).
Instagram 15m 50m 228% o In our own digital platforms, we views closed the year with 14 million users, 27% more than in 4Q17.
Users: comScore (Desktop 6+ and Total Mobile 15+) Pageviews: comScore (Desktop 6+ and Total Mobile 15+) Youtube, Facebook and Instagram views: Tubular (Televisa total property data) 16 DIVERSIFIED REVENUE STREAMS: Cable
Within Cable, data and voice account for 63% of revenue generating units
o Cable RGU Mix Strong gross additions Cable RGUs in millions o Voice and data are the main Video Voice Data sources of growth Voice RGUs Data RGUs o Many data customers are Video RGUs upgrading to faster speeds 37% 3.0 43% 41% 49% 49% 45% 2.1 o Growing in high speed Fiber- 2.1 1.9 to-the-Home users 4.5 25% 1.2 21% 3.4 3.8 21% 22% 3.1 18% 18% 0.9 2.3 1.7 38% 38% 33% 33% 34% 35% 4.1 4.2 4.2 4.4 3.4 2.5
2013 2014 2015 2016 2017 2018 2013 2014 2015 2016 2017 2018
Source: Grupo Televisa's public filings 17 DIVERSIFIED REVENUE STREAMS: Cable
Our izzi go app further positions our cable operation for evolving viewing habits
o 68 live channels from Mexico and from global content distributors
o Over 30 thousand on-demand assets from Televisa’s extensive library, FOX Premium, HBO MAX, and other international content partners
o Different content at the same time, on the TV and other devices
o With izzi Kids, six live TV channels and hundreds of hours on video on demand
o Over 187 thousand users as of 4Q18
18 DEFINING TRENDS
I. Highlights 4Q’18
II. Diversified revenue streams
III. Growing operating cash flow
IV. Untapped opportunities in growth markets
V. Strong balance sheet
19 GROWING OPERATING CASH FLOW
The free cash flow profile of Televisa has improved dramatically
o Expanding operating cash flow Capital Expenditures in Cable and Sky has increased O.S.I minus Capex Ps. in billions our ability to generate strong Ps. in billions free cash flow Cable Sky 22.8 21.5 Content o The contribution to consolidated OSI, net of capital expenditures, 17.6 has almost doubled since 2016 16.2 15.2 15.5
12.3 9.2 12.3 7.6 10.1 11.5
5.1 5.4 6.2 5.0 3.8 3.9 2.0 2.4 2.5 2.9 2.1 1.7
2013 2014 2015 2016 2017 2018 2013 2014 2015 2016 2017 2018
Source: Grupo Televisa's public filings 20 GROWING OPERATING CASH FLOW: Cable
We are entering a harvesting phase after heavy investments in infrastructure Cable net adds RGUs in millions 1.5 o During 2015 and 2016, Televisa accelerated its capital investments in Cable segment 1.2
0.7 0.7 o It embarked on a heavy-capex phase to upgrade 0.6 0.6 0.5 0.5 its network and support growth in RGUs 0.4 0.4 0.2 o Cable capex reached Ps 17.6 billion in 2016 making Televisa one of the most important investors in Mexico’s telecom infrastructure that year
o As a percentage of revenues, Cable capex came Cable OSI net of CAPEX down from 55% in 2016 to 34% in 2018 Ps. in billions 3.9 3.0
2010 2011 2012 2013 2014 2015 2016 2017 2018 -1.5 -1.4 -1.6 -0.4 -0.2
-4.3 -4.8 Source: Grupo Televisa's public filings. * Organic growth only. Excludes RGU growth from acquisitions 21 GROWING OPERATING CASH FLOW: Sky
Sky net adds Cash flow has increased substantially after Subs in millions 2016 due to lower capital needs 1.08 1.15 0.96 0.86 0.74 o Sky launched VeTV is 2010, a pre-paid basic pay TV 0.62 0.65 package 0.20 0.17 -0.02 -0.37 o Following its launch, Sky embarked on an aggressive campaign to add customers
o Its net adds reached a peak in 2012 installing over 40,000 new services every week, on average
o In 2016, growth further accelerated with the shut- Sky OSI net of CAPEX down of the FTA analog signals Ps. in billions 6.3 5.9 o Slower net adds means slower deployment of capital to activate new customers 3.5 3.7 3.1 2.8 2.7 o 2.3 With slower net adds starting in 2017, Sky free cash flow generation has increased substantially
-0.4 2010 2011 2012 2013 2014 2015 2016 2017 2018
Source: Grupo Televisa's public filings 22 DEFINING TRENDS
I. Highlights 4Q’18
II. Diversified revenue streams
III. Growing operating cash flow
IV. Untapped opportunities in growth markets
V. Strong balance sheet
23 UNTAPPED OPPORTUNITIES: Broadband Market
Composition of Data Subs in Mexico Data Net Adds
Thousand RGUs 2.60% 249
19.40% Incumbent DSL Televisa Cable 40.20% Coaxial 110 36 Fiber 311 Other 14 157 173 119 145 136 4 62 37.80% -23 -8 2Q'17 3Q'17 4Q'17 1Q'18 2Q'18 3Q´18 4Q´18
It Includes RGUs acquired from Axtel
o According to the Mexican regulator, as of the end o In the last seven quarters our Cable Segment has of the second quarter 2018, 7.2 million added more than twice the data RGUs added by customers were still on copper (DSL: Digital the incumbent Subscriber Line)
o This is a fertile pool for Cable as it takes advantage of its superior coaxial and fiber infrastructure
Source: Internal analysis based on IFT and other companies ’ public information 24 UNTAPPED OPPORTUNITIES: Broadband Market
Market Share Izzi - Data services Telecom Market Ps. in billions Quarterly 11.6 24.1% AMX 22.2% 7.5 20.8% 21.3% 5.5 Telefónica 16.4% 4.1 AT&T 13.1% Megacable 11.0% 68.2 15.5 Sky Izzi 7.0 Otros
As of 4Q18 2012 2013 2014 2015 2016 2017 2018
o Our cable operation, izzi, has been gaining o In spite of Televisa’s strong growth in the market share for more than 5 years telecom market, it is still a small participant in the industry
Source: Internal analysis based on IFT and other companies’ public information 25 UNTAPPED OPPORTUNITIES: Broadband Market
Fixed broadband penetration 50.0 subscribers per 100 inhabitants 40.0
30.0
20.0
10.0
0.0
Italy
Chile
Israel
Japan
Korea
Latvia
Spain
France
Turkey
Poland
Ireland
Austria
Greece
Iceland
Finland
Estonia
Canada
Norway
Mexico
Sweden
Belgium
Slovenia
Hungary
Portugal
Australia
Denmark
Germany
Lithuania
Colombia
Switzerland
Netherlands
Luxembourg
NewZealand
UnitedStates
CzechRepublic
SlovakRepublic UnitedKingdom
o Mexico’s broadband market is just developing. Data customers in Mexico still have among the lowest speeds in the OECD.
o Mexico has the second lowest penetration of data services of all OECD countries, and the lowest speed.
o We are positioned like to no other operator in Mexico to benefit from increased demand for broadband.
Source: OECD, Broadband Portal (June 2018) 26 UNTAPPED OPPORTUNITIES: Broadband Market
There are 33mm homes in the country
of which more than 14.5mm homes are passed by Televisa Cable
Of those, more than 90% of the homes are capable of getting 100Mbps from Televisa Cable
but only 4.5mm homes are currently our customers
There is plenty of room for further growth under existing homes passed
o Less than half of our homes passed are currently customers of Televisa for broadband services
o In the large majority of the markets we reach, Televisa is the provider capable of delivering the fastest speeds
Source: Internal analysis based on IFT and other companies’ public information 27 DEFINING TRENDS
I. Highlights 4Q’18
II. Diversified revenue streams
III. Growing operating cash flow
IV. Untapped opportunities in growth markets
V. Strong balance sheet
28 STRONG BALANCE SHEET
Limited FX exposure, comfortable debt profile, long maturities
An operating hedge with a similar amount in dollar-denominated revenue and in dollar-denominated costs and expenses • dollar-denominated revenue US$788 million (2017) • dollar-denominated costs and expenses US$690 million (2017)
A balance sheet hedge with a similar amount in dollar-denominated assets and liabilities (4Q18) • US$3.9b in total debt includes (1) USD debt, (2) capital lease obligations, (3) other notes payable • US$4.4b in total assets includes (1) our stake in Univision; (2) cash and temporary investments
We have a very comfortable debt profile with very long maturities
• Net debt to EBITDA ratio: around 2.2x as of 4Q18 • Closest USD-denominated maturity: US$600 million in 2025 • Closes MXN-denominated maturity: 10 billion pesos in 2020 • Weighted average maturity: USD is 19.8 years, MXN is 7.4 years • 4Q18 USD/MXN breakdown: 59% of debt was in USD, 41% of debt in MXN • 4Q18 weighted average interest rates: in USD 6.05%, in MXN 7.54% • US$211 million in interest expense (2019), all of which is hedged
Source: Grupo Televisa's public filings. 29 OTHER RELEVANT INFORMATION
30 NON-CORE ASSETS: Selling or rationalizing
31
Consolidated Under the “Other Businesses” line item Contribution to Consolidated Sales o Gaming: Casino sites and online lottery business. 2018 Revenues of 8.14% Ps 2.7 billion. Exploring sale of asset.
o Radio: (50% equity interest). Owned and affiliated radio stations. 2018 Revenues of Ps 920 million. Exploring sale of asset.
o Publishing: The leading Spanish-language magazine publisher in Latin America. Recently closed unprofitable markets. Contribution to OSI 1.85% Unconsolidated
o Imagina: (19% equity interest). Spanish media group Imagina. Closed sale during 2018. Proceeds of approximately USD 341 million
o Live entertainment: (40% equity interest). The company organized 3,109 events during 2018. Exploring sale of asset.
Source: Grupo Televisa's public filings SUSTAINABILITY: Many recent milestones
o Televisa included in the 2019 Bloomberg Gender-Equality Index.
o Member of the Dow Jones Sustainability MILA Pacific Alliance Index.
o One of only three Mexican companies to be included in the Dow Jones Sustainability Emerging Markets Index.
o Part of the United Nations (UN) Global Compact, the world’s largest corporate sustainability initiative.
o Televisa has submitted our Report for Climate Change and Water through CDP (formerly the Carbon Disclosure Project).
o Constituent of the FTSE4Good Emerging Index.
o Members of the IPC Sustentable (Sustainability Index), of the Bolsa Mexicana de Valores (Mexican Stock Exchange).
o Televisa’s social responsibility programs were recognized for the second time with the “Empresa Socialmente Responsable” award.
o Our facilities Santa Fe, San Ángel and Collection Center received the Environmental Quality Certificate issued by federal environmental entities.
o Televisa was recertified with the new version of the norm ISO 14001:2015 in three of our facilities: Santa Fe, San Ángel and Collection Center. Source: Grupo Televisa's public filings 32 Investor Relations www.televisair.com
+ (52) 55 5261 2438 Av. Vasco de Quiroga 2000, A4. Col. Santa Fe CP. 01210 Mexico City
Carlos Madrazo VP, Head of Investor Relations [email protected]
Santiago Casado Investor Relations Director [email protected]
Pablo Necoechea Sustainability and Analysis Coordinator [email protected]
Ana Paola Montiel Investor Relations Analyst 33 [email protected]